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ALL TAXPAYERS SHOULD HAVE A SAVINGS PLAN TO GUARANTEE A SECURE FINANCIAL
RETIREMENT AND IRA'S ARE AN IMPORTANT PART OF THIS PLAN. THEY
PROVIDE SIGNIFICANT INCOME FOR RETIREMENT AND OFFER TAX BENEFITS ALONG THE
WAY.
Contributions:
- An IRA holder must be under age 70 1/2 and have earned
income to contribute to an IRA.
- A maximum of $4,000.00 is eligible to be contributed in
any tax year. Effective January 1, 2005, an additional $4,000.00 may
be contributed into an IRA account for a non-working spouse.
Participants who have attained the age of 50 may make an additional
contribution of $1,000.00.
- Note** For taxpayers who are considered active
participants in an employer-sponsored retirement plan, IRA deductibility is
based on modified adjusted gross income.
Rollovers & Transfers:
- Rollovers and transfers are two methods of moving
assets between retirement plans.
- Trustee transfers occur when funds are sent directly
between institutions. You are allowed an unlimited number and they are
not reported to the IRS. Midstate never charges a fee for this
service.
- Rollover funds occur when funds are sent from the
trustee to the participant. They can be redeposited only within sixty
(60) days of distribution. An IRA may receive an unlimited number of
rollover deposits
- Note** Deposits which were rolled are not eligible
for further rollovers until 12 months from when they were distributed from
the original IRA.
Customers age over 59 1/2:
- Midstate offers a rate increase for our customers over 59 1/2. If
interest rates should rise, the participant can bump their rate once within
a twelve month period.
- A customer who has attained age 59 1/2 may also
withdrawal funds from their IRA account at any time without penalty.
If you want more information about the Roth, please
contact our retirement department at (410)377-4330 or E-mail us by clicking
here.
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